Many people are turning to a relatively new concept in second home ownership. No it's not timeshares. It's called fractional home ownership. The best way to define fractional ownership is that it is a middle ground solution between sole ownership and timeshares where owners own shares in a piece of real estate.
Fractional ownership is different from a timeshare. In a timeshare, a buyer purchases a 2 week block of usage in a resort that can be traded between other timeshare owners at other resorts in the network.
In fractional home ownership, homes are divided into deeded shares that can be brought and sold through real estate agents. The homes are divided into 2 to- shares. In other words you have to 1/13 ownership in the home.
If you buy a 1/13 share in a fractional home, you are buying 1 week a season, 4 times a year. The most popular fractional ownership shares are 1/4. Under a ownership, the buyer gets to use the property 1 week a month during the year.
Most fractional ownership homes are situated in resort areas with private gates and private security services. Many of the homes have several amenities such as pools and spas. Some communities provide fractional ownership with condos and townhouses where the owners will share the amenities with other owners that may be vacationing at the same time.
Fractional ownership homes will have a homeowners association formed. The owners then pay HOA fees to a property management firm that is contracted to ensure the property is cared for and things like the utilities, insurance, taxes and maintenance are paid.
Fractional home owners cite many reasons why they purchased using this method. Many could afford to buy the home, but felt the fractional ownership met their needs. In addition they liked the concept of not having to care for the home, pay someone to clean it, check on it weekly, etc. They still have a deed to a the property that will appreciate in value.
Final Comments
So when considering purchasing a vacation home, consider the benefits of buying a fractional home. It may be just what you have been looking for in a vacation home. - 31515
Fractional ownership is different from a timeshare. In a timeshare, a buyer purchases a 2 week block of usage in a resort that can be traded between other timeshare owners at other resorts in the network.
In fractional home ownership, homes are divided into deeded shares that can be brought and sold through real estate agents. The homes are divided into 2 to- shares. In other words you have to 1/13 ownership in the home.
If you buy a 1/13 share in a fractional home, you are buying 1 week a season, 4 times a year. The most popular fractional ownership shares are 1/4. Under a ownership, the buyer gets to use the property 1 week a month during the year.
Most fractional ownership homes are situated in resort areas with private gates and private security services. Many of the homes have several amenities such as pools and spas. Some communities provide fractional ownership with condos and townhouses where the owners will share the amenities with other owners that may be vacationing at the same time.
Fractional ownership homes will have a homeowners association formed. The owners then pay HOA fees to a property management firm that is contracted to ensure the property is cared for and things like the utilities, insurance, taxes and maintenance are paid.
Fractional home owners cite many reasons why they purchased using this method. Many could afford to buy the home, but felt the fractional ownership met their needs. In addition they liked the concept of not having to care for the home, pay someone to clean it, check on it weekly, etc. They still have a deed to a the property that will appreciate in value.
Final Comments
So when considering purchasing a vacation home, consider the benefits of buying a fractional home. It may be just what you have been looking for in a vacation home. - 31515
About the Author:
Hubert Miles is the founder of Waterfront Houses USA, an online marketing service that provides Lake Homes in the US and Canada. Find Maryland Lake Homes.
